Core Viewpoint - Jiao Cheng Ultrasonic experienced a 5.5% increase in stock price, reaching 107.55 CNY per share, with a total market capitalization of 12.447 billion CNY as of November 5 [1] Company Overview - Jiao Cheng Ultrasonic, established on February 13, 2007, is located in Minhang District, Shanghai, and was listed on September 27, 2022 [1] - The company specializes in the research, design, production, and sales of ultrasonic welding and cutting equipment and accessories, as well as providing automation solutions for the new energy battery manufacturing sector [1] Revenue Composition - The revenue breakdown of Jiao Cheng Ultrasonic is as follows: - Accessories: 31.42% - Ultrasonic equipment for new energy batteries: 25.86% - Services and others: 18.51% - Ultrasonic equipment for wire harness connectors: 13.92% - Ultrasonic equipment for semiconductors: 8.03% - Ultrasonic equipment for non-metal materials: 2.09% - Others (supplementary): 0.18% [1] Fund Holdings - Huatai Baoxing Fund holds a significant position in Jiao Cheng Ultrasonic, with its Huatai Baoxing Industrial Upgrade Mixed Fund A (021792) owning 20,000 shares, accounting for 5.66% of the fund's net value, making it the eighth largest holding [2] - The fund has achieved a year-to-date return of 50.65% and a one-year return of 46.43%, ranking 838 out of 8150 and 961 out of 8043 in its category, respectively [2] Fund Manager Information - The fund manager of Huatai Baoxing Industrial Upgrade Mixed Fund A is Shang Shuo Hui, who has been in the position for 8 years and 229 days [3] - The total asset size of the fund is 1.006 billion CNY, with the best return during the manager's tenure being 134.54% and the worst being -38.16% [3]

Core Viewpoint - The stock of Shanghai Jiao Cheng Ultrasonic Technology Co., Ltd. has increased by 5.5%, reaching 107.55 CNY per share, with a total market capitalization of 12.447 billion CNY [1] Company Overview - Shanghai Jiao Cheng Ultrasonic Technology Co., Ltd. was established on February 13, 2007, and went public on September 27, 2022 [1] - The company specializes in the research, design, production, and sales of ultrasonic welding and cutting equipment and accessories, as well as providing automation solutions for the new energy battery manufacturing sector [1] Revenue Composition - The revenue breakdown of the company's main business is as follows: - Accessories: 31.42% - Ultrasonic equipment for new energy batteries: 25.86% - Services and others: 18.51% - Ultrasonic equipment for wire harness connectors: 13.92% - Ultrasonic equipment for semiconductors: 8.03% - Ultrasonic equipment for non-metal materials: 2.09% - Others (supplementary): 0.18% [1] Fund Holdings - A fund under Bank of China Securities holds a significant position in Jiao Cheng Ultrasonic, with 26,400 shares, accounting for 4.46% of the fund's net value, making it the eighth largest holding [2] - The fund, Bank of China New Energy Mixed A (005571), has a total scale of 35.507 million CNY and has achieved a year-to-date return of 42.84% [2] Fund Manager Performance - The fund manager, Zhang Lixin, has been in position for 2 years and 318 days, with the fund's total assets amounting to 14.8 million CNY [3] - During Zhang's tenure, the best fund return was 4.4%, while the worst was -5.35% [3]

Group 1 - The A-share market experienced a significant increase in public fund research activities in October 2025, with 159 public institutions participating and covering 632 stocks, resulting in a total of 7,452 research instances, a 60.57% increase from September [1] - The computer industry saw a notable focus, with Nengke Technology being the most researched company, receiving 73 research instances from 53 public institutions, highlighting interest in its AI business developments [1] - The top ten researched stocks in October were primarily from the power equipment, machinery, and communication sectors, indicating strong interest in these industries [1][2] Group 2 - The pharmaceutical and biological industry emerged as the hottest sector for research, with 85 stocks receiving a total of 1,229 research instances, significantly outpacing other industries [2][3] - The electronics industry followed closely, with 78 stocks and a total of 1,069 research instances, indicating a strong interest from public institutions [3] - The power equipment and machinery sectors also showed high research activity, each with over 750 research instances and more than 55 stocks being researched [3] Group 3 - Chuangjin Hexin Fund was the most active public institution in October, conducting 302 research instances, primarily focusing on the pharmaceutical, electronics, and machinery sectors [3] - Ping An Fund followed with 169 research instances, concentrating on electronics, machinery, power equipment, and computer industries [3] - Bosera Fund ranked third with 137 research instances, focusing on power equipment and electronics, aligning with current market trends [3]

Summary of the Conference Call for Jiao Cheng Ultrasonic Industry and Company Overview - **Company**: Jiao Cheng Ultrasonic - **Industry**: Lithium battery, semiconductor, and advanced packaging sectors Key Points and Arguments 1. **Growth in Lithium Battery Sector**: Jiao Cheng Ultrasonic is benefiting from the expansion of lithium battery manufacturers, with significant order growth expected in the second half of 2024. Revenue from lithium batteries is projected to reach 180 million yuan in the first three quarters of 2025, marking a substantial year-on-year increase and capturing a market share of 70-80% in new markets and approximately 50% in existing markets [2][17]. 2. **Power Semiconductor Equipment**: The company is expanding into power semiconductor welding equipment, with expected revenue of around 100 million yuan in 2025, doubling from 2024. This equipment is primarily used in HBT or silicon carbide applications and has already begun bulk supply to major clients like BYD Electronics and ChipLink Integration [2][3][12]. 3. **Advanced Packaging Detection Equipment**: Jiao Cheng Ultrasonic is collaborating closely with major domestic storage manufacturers, with hopes of achieving mass production in 2025. The ultrasonic scanning equipment is utilized for non-destructive testing in 2.5D/3D packaging, with a market size exceeding 10 billion yuan, and semiconductor applications estimated at around 1.5 billion yuan [2][14]. 4. **Consumable Product Attributes**: The company's products have a consumable nature, requiring frequent replacements. In the lithium battery sector, the replacement frequency is about 20%, while in the semiconductor sector, it could reach 50-100%. This strong demand for consumables ensures stable revenue, with the proportion of accessory income increasing from 13% in 2020 to over 31% in 2024 [2][6][18]. 5. **Financial Performance**: From 2018 to the first half of 2025, the company's revenue is expected to grow from 109 million yuan to 855.8 million yuan, reflecting a compound annual growth rate (CAGR) of 32.37%. The gross profit margin has consistently improved, reaching 65.25% in the first half of 2025 [2][8]. 6. **Future Revenue Projections**: The company forecasts revenues of 761 million yuan, 1.054 billion yuan, and 1.452 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 30%, 38%, and 38%. Net profits are expected to be 138 million yuan, 244 million yuan, and 329 million yuan, with growth rates of 61.3%, 67.9%, and 41.3% [4][19]. 7. **Competitive Advantages**: Jiao Cheng Ultrasonic is replacing the monopolistic positions of foreign companies in the power semiconductor sector and competing in the advanced packaging field. The political landscape and delivery advantages provide the company with opportunities to validate product performance through collaborations with domestic giants [4][15]. 8. **Management Confidence**: The founder and chairman of the company holds approximately 32% of the shares and has committed not to sell, indicating strong confidence in the company's future [4][10]. 9. **Market Trends**: The semiconductor industry is expected to experience significant expansion in the coming years, particularly in the new energy and lithium battery equipment sectors. Jiao Cheng Ultrasonic is well-positioned to benefit from these trends, making it a company to watch closely [20]. Other Important Insights - **Team Background**: The technical foundation provided by the founder and core management team, primarily from Shanghai Jiao Tong University, has been crucial for the company's innovation and expansion into new application areas [9]. - **Emerging Markets**: The company is also exploring new markets such as wire harness connections, which could further diversify its revenue streams [5].

Core Insights - On October 30, 2023, Jiao Cheng Ultrasonic conducted 7 transactions on the block trading platform, totaling 1.078 million shares and a transaction value of 106 million yuan, with a transaction price of 98.45 yuan, reflecting a discount of 10.09% compared to the closing price of the day [2][3] - Institutional specialized seats participated in 6 of the transactions, with a total transaction amount of 104 million yuan and a net purchase of 104 million yuan [2] - Over the past three months, the stock has seen a total of 19 block trades, amounting to 152 million yuan [2] Trading Data Summary - The closing price of Jiao Cheng Ultrasonic on October 30 was 109.50 yuan, down 5.15%, with a turnover rate of 3.89% and a total transaction amount of 498 million yuan [2] - The stock experienced a net outflow of 53.99 million yuan in main funds throughout the day, with a cumulative decline of 2.67% over the past five days and a total net outflow of 53.02 million yuan [2] - The latest margin financing balance for the stock is 414 million yuan, having increased by 107 million yuan over the past five days, representing a growth of 34.95% [3] Company Background - Shanghai Jiao Cheng Ultrasonic Technology Co., Ltd. was established on February 13, 2007, with a registered capital of 115.73336 million yuan [3]

Summary of Key Points Core Viewpoint - On October 30, a significant block trade of 1.078 million shares of Jiao Cheng Ultrasound was executed, amounting to 106 million yuan, which represented 17.57% of the total trading volume for that day. The transaction price was 98.45 yuan, reflecting a discount of 10.09% compared to the market closing price of 109.5 yuan [1]. Group 1: Trading Details - The block trade involved multiple institutional buyers, with the transaction price consistently at 98.45 yuan across different trades [2]. - The total transaction amount for the block trade was approximately 10.6 million yuan, with the volume reaching 1.078 million shares [1][2]. - The discount of 10.09% from the market closing price indicates a notable price deviation, which may attract investor interest [1].

Core Viewpoint - The company, Jiao Cheng Ultrasonic (688392), has shown significant growth in revenue and net profit in the first three quarters of 2025, driven by stable product margins and strong demand in the lithium battery and semiconductor sectors [8]. Financial Performance - In the first three quarters of 2025, the company's main revenue reached 521 million yuan, a year-on-year increase of 27.53% [8]. - The net profit attributable to shareholders was 94.02 million yuan, up 359.81% year-on-year, while the net profit after deducting non-recurring gains and losses was 76.17 million yuan, an increase of 673.31% [8]. - The gross profit margin stood at 65.05% [8]. Business Segments - The company maintains stable gross margins across its product lines, although slight fluctuations occur due to customer product upgrades and changes in product structure [2]. - In the lithium battery sector, the company has established long-term partnerships with key customers, enhancing its competitive edge and market position [3]. - The company is actively expanding its product offerings in the wire harness connector sector, which is increasingly used in electric vehicles and energy storage applications [5]. Product Development - The company has made significant advancements in the semiconductor field, with products like ultrasonic welding machines and advanced ultrasonic scanning microscopes achieving mass production and delivery [6]. - The company is also exploring applications in aerospace and medical fields, leveraging its core ultrasonic technology to meet emerging market demands [7]. Market Outlook - The lithium battery market is expected to continue its growth trajectory, supported by the rapid expansion of the energy storage market and ongoing technological advancements [3]. - The company is optimistic about maintaining its profitability as it enhances its product offerings and increases the proportion of high-margin products in its sales [4]. Institutional Interest - Over the past 90 days, seven institutions have rated the stock, with five giving a "buy" rating and two an "increase" rating, indicating strong institutional interest [8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's Q3 performance met market expectations, with a revenue of 200 million yuan, a quarter-on-quarter increase of 20% and a year-on-year increase of 13% [8] - The advanced packaging technology has achieved breakthroughs, with the market potential exceeding 10 billion yuan and low domestic penetration [8] - The company has successfully delivered core equipment for solid-state battery research and development, indicating strong future growth potential in this area [8] - The overall revenue for 2025 is projected to exceed 750 million yuan, with significant growth expected in lithium battery equipment and materials [8] Financial Projections - Total revenue is forecasted to be 525.19 million yuan in 2023, increasing to 1,559.18 million yuan by 2027, representing a compound annual growth rate of 47.04% [1] - The net profit attributable to shareholders is expected to rise from 66.54 million yuan in 2023 to 406.93 million yuan in 2027, with a year-on-year growth rate of 72.27% in 2027 [1] - The latest diluted EPS is projected to increase from 0.57 yuan in 2023 to 3.52 yuan in 2027 [1] Market Data - The closing price of the stock is 115.44 yuan, with a market capitalization of approximately 13.36 billion yuan [5] - The price-to-earnings ratio (P/E) is currently at 200.77, expected to decrease to 32.83 by 2027 [1][9]

Core Points - The stock of Shanghai Jiaocheng Ultrasonic Technology Co., Ltd. fell by 5.22% to 109.41 CNY per share, with a trading volume of 128 million CNY and a turnover rate of 0.99%, resulting in a total market capitalization of 12.662 billion CNY [1] Company Overview - Shanghai Jiaocheng Ultrasonic Technology Co., Ltd. was established on February 13, 2007, and went public on September 27, 2022. The company specializes in the research, design, production, and sales of ultrasonic welding and cutting equipment and accessories, as well as providing automation solutions for the new energy battery manufacturing sector [1] - The revenue composition of the company's main business includes: - Accessories: 31.42% - Ultrasonic equipment for new energy batteries: 25.86% - Services and others: 18.51% - Ultrasonic equipment for wire harness connectors: 13.92% - Ultrasonic equipment for semiconductors: 8.03% - Ultrasonic equipment for non-metal materials: 2.09% - Others (supplementary): 0.18% [1] Fund Holdings - Huatai Baoxing Fund has a significant holding in Jiaocheng Ultrasonic, with its Huatai Baoxing Industrial Upgrade Mixed Fund A (021792) holding 20,000 shares, accounting for 5.66% of the fund's net value, making it the eighth largest holding. The estimated floating loss today is approximately 120,600 CNY [2] - The Huatai Baoxing Industrial Upgrade Mixed Fund A was established on September 24, 2024, with a latest scale of 19.6441 million CNY. Year-to-date returns are 60.51%, ranking 721 out of 8,152 in its category; one-year returns are 56.12%, ranking 850 out of 8,038; and since inception returns are 59.31% [2] Fund Manager Information - The fund manager of Huatai Baoxing Industrial Upgrade Mixed Fund A is Shang Shuohui, who has been in the position for 8 years and 223 days. The total asset size of the fund is 1.006 billion CNY, with the best fund return during his tenure being 141.92% and the worst being -38.16% [3]

Summary of Conference Call for Jiao Cheng Company Industry Overview - The semiconductor equipment industry is experiencing strong growth, with Jiao Cheng Company expecting semiconductor equipment orders to reach no less than 200 million yuan in 2025, reflecting a robust demand trend despite long acceptance cycles [2][4] - The lithium battery equipment sector is projected to generate revenue of at least 220 million yuan in 2025, with significant contributions from leading lithium battery manufacturers expanding production [2][7] Key Financial Metrics - The overall gross margin for the company remains high, reaching 65% in Q3 2025, with lithium battery equipment gross margin exceeding 50% and consumables over 70% [2][6] - In Q3 2025, lithium battery equipment revenue was approximately 160 million yuan, while revenue from harness and semiconductor businesses was around 150 million yuan, and consumables contributed about 180 million yuan [3] Growth Drivers - The company holds a 70-80% market share in the traditional lithium battery sector, with each additional 1GW of capacity corresponding to approximately 1.2 million yuan in equipment revenue and 200,000 yuan in consumables revenue [8] - The automotive harness segment is expected to see a threefold increase in revenue in 2025, with a domestic market share of about 20%, gradually replacing imported brands [2][14] Emerging Markets and Future Potential - The company is optimistic about emerging markets such as semiconductors and medical devices, as well as niche areas like liquid cooling plate detection and composite material welding, which could yield market opportunities worth billions [5][19] - The semiconductor sector is anticipated to grow significantly, with the company already securing orders for four devices from leading domestic manufacturers for advanced packaging applications [17] Long-term Strategy and R&D Focus - R&D investments are primarily focused on the semiconductor field to ensure technological leadership and continuous innovation [5][15] - The company plans to maintain a strong position in the semiconductor equipment market, with expectations of increasing demand for detection equipment as advanced packaging processes evolve [18] Profitability Outlook - The net profit margin for traditional lithium battery equipment is expected to be around 25-30%, with overall gross margins potentially reaching 50% when including consumables [10] - Consumables are projected to grow at an annual rate of 30%, with total consumables revenue expected to be around 250 million yuan for the year [10][12] Market Position and Competitive Advantage - The company emphasizes its competitive edge in the lithium battery equipment sector, where it has achieved a gross margin of 50% and is positioned as a key supplier to major manufacturers [20] - The unique position of being the only domestic company in the mainstream supply chain for leading manufacturers supports the maintenance of high gross margins [20] Conclusion - Jiao Cheng Company is well-positioned for growth in the semiconductor and lithium battery sectors, with strong financial performance, a focus on R&D, and a strategic approach to emerging markets and technologies [2][5][19]